Title: Loan/loan guarantee outstanding balances
Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of Housing Associates, Inc., HUD Project No. 052-HD-008, and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Because the Schedule presents only a selected portion of the operations of Housing Associates, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, whereby certain types of expenditures are not allowable or are limited as to reimbursement. There were no federal awards passed through to subrecipients for the year ended June 30, 2022.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES (14.181) - Balances outstanding at the end of the audit period were 1073700. The Organization has received a direct loan in the amount of $1,073,700 from HUD under Section 811 of The National Affordable Housing Act which is recorded as a refundable advance in the accompanying financial statements. The loan does not bear interest and repayment is not required as long as the housing remains available for low-income persons with disabilities and operates for 40 years. Should the Organization fail to comply with these requirements, HUD will require repayment of the entire refundable advance plus interest from the date of the first advance. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. Housing Associates, Inc. received no additional loans during the year. The balance of the Section 811 Direct Loan outstanding at June 30, 2022, totaled $1,073,700 under the HUD Supportive Housing Program for Persons with Disabilities, CFDA # 14.181.
Title: Project Rental Assistance Contract
Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of Housing Associates, Inc., HUD Project No. 052-HD-008, and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Because the Schedule presents only a selected portion of the operations of Housing Associates, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, whereby certain types of expenditures are not allowable or are limited as to reimbursement. There were no federal awards passed through to subrecipients for the year ended June 30, 2022.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Organization entered into a PRAC with HUD in June 1996. The agreement stipulates that the Organization will provide housing to low-income disabled persons in its 15 rental units. In return, HUD will subsidize rental payments to tenants to cover the difference between operating expenses and tenant payments as determined in accordance with the HUD established guidelines. The initial term of the contract was 20 years from the date each unit was placed in service, thereafter it renews on an annual basis. The maximum rental income allowed per unit under the PRAC was $710 through October 31, 2021, including tenant rents and HUD subsidies. The maximum rental income allowed per unit was increased to $769 effective November 1, 2021. The maximum annual PRAC subsidy was $134,880 for the year ended June 30, 2022.